Auto Insurance Requirements in Arizona

Arizona's financial responsibility law requires drivers to carry insurance in the minimum amounts of 25/50/15.

This is to ensure that Arizona residents are financially protected from damages resulting from auto accidents. The only accepted alternative to car insurance is a deposit with the state of $40,000 in cash or certificates.

Drivers must keep proof of their insurance, either with a physical or electronic copy of an insurance ID card, with them at all times while driving. You'll be asked to show this proof if you are pulled over on the road and when you register your car with the Motor Vehicle Division (MVD).

Arizona required car insurance coverage

Required minimums

Bodily injury (BI)

$25,000 per person/$50,000 per accident

Property damage (PD)

$15,000 per accident
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Arizona car insurance minimum requirements

A policy that meets Arizona's mandatory insurance requirements includes two liability insurance coverages: bodily injury and property damage. When you cause a car crash, liability insurance helps you pay for the other driver’s medical bills and property damage, up to a certain amount, which is also known as your coverage limits. The state requires a minimum coverage limit for each of these.

Bodily injury (BI):The minimum coverage limits are $25,000 per injured person and $50,000 for two or more injured persons in an accident in which you are at fault. BI also covers legal fees in the event that the other party sues you, but the insurer will only pay up to the stated limit. You may want to consider higher limits, but their availability and price vary by insurer.

Property damage (PD): The minimum coverage limits are $15,000 for damaged property you cause in any accident where you are found to be at fault. This may cover the other driver’s car, property that is damaged in the accident, such as buildings and fences, and more. Higher limits are usually available, but it varies by insurer.

Cheapest companies in Arizona for minimum liability

Optional car insurance coverage in Arizona

While liability insurance covers what you would owe to another driver, you may still have significant costs for your own medical care and car repairs.

Most agents and government officials will tell you that getting only the mandatory insurance limits in Arizona is not enough to protect you.

In addition to increasing your liability limits, you could also consider adding these coverages to create a more comprehensive insurance policy.

Physical damage: Consisting of collision and comprehensive coverage, physical damage insurance covers your car’s repair costs, whether they were from a collision (regardless of fault), vandalism or theft. The most you can receive under either coverage is your insured car’s current market value. Note that insurers usually ask for a deductible amount, which you must pay on your own after each claim before the coverage takes effect.

Uninsured/underinsured motorist (UM/UIM): UM/UIM covers your own bodily injury medical bills when the at-fault motorist is uninsured or underinsured. Similar to your BI coverage, there is also a range of limits you may purchase for UM/UIM. However, the UM/UIM limits cannot be higher than the BI limits on the same policy.

Medical payments (MED): MED covers your medical bills when the injuries were from an auto-related accident, up to a certain amount. This covers costs like ambulance rides, hospital visits, surgeries and professional nursing costs. While some Arizona motorists may find this coverage redundant to their health insurance, consider that MED reimburses the health insurance deductibles you have to pay before that coverage kicks in.

Alternative proof of financial responsibility

The Arizona Motor Vehicle Division (MVD) allows one alternative to an insurance policy. You may satisfy the financial responsibility law by making a deposit of $40,000, in either cash or securities (such as government bonds or notes), with the state treasurer. When the treasurer has verified that you have no prior unsatisfied judgments against you, you will receive a certificate of deposit.

Use this certificate as your proof of insurance when you face a law enforcement officer in the Grand Canyon State. Just keep in mind that if you ever cause an accident in Arizona, the claims would be paid out of that deposit. Should the total amount be greater than $40K, you'd be at risk for a lawsuit if the injured party decides to try to recover the rest.

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